Startup activities of established Finnish companies...20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 9 1. NO STARTUP ACTIVITY (1/11) Interested

Startup activities ofestablished Finnish companies

MASTER’S THESIS

SINI SAALASTI , UNIVERSITY OF TAMPERE, 2016

THE RESEARCH SHORTLY

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 2

Perspective of large companies

(1) HOW

(2) WHY OR WHY NOT

(3) HOW EXTENSIVELY

…do established companies engage in startup activities?

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 3

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 4

STARTUP ACTIVITY is all activity that established companies conduct in collaboration with startups, related to startups and as startups.

A STARTUP is a temporary and expansionary organization, which does not possess a ready business model and therefore it is searching for one (Blank & Dorf, 2012; Ries, 2011; Graham, 2012).

Qualitative study:11 companies on varied industries

• 15 SEMI-STRUCTURED INTERVIEWSin 11 established companies.

• INDUSTRIESbuilding products pharmaceuticals electronics recyclingenergy retail forest technology machineryIT services and solutions

• ORGANIZATIONAL LEVELmanagement group members (8)upper or middle management (3)lower management (4)

• LOCATION IN THE ORGANIZATIONTechnology or R&D (6)Business responsibility (5)Business Development or Innovations (2) CEO (1)Communications (1)

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 5

FINDINGS

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 6

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 7

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 8

Challenges

1. Encountering and finding the startups

2. Risky partners

3. Financial matters

4. The effect of industry

5. Cultural challenges

6. The impact of management guidelines

Favorable aspects

1. Keeping up in the changes of business environment

2. Developing the business

3. Developing the organization

4. Repute advantages

5. Social responsibility

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 9

1. NO STARTUP ACTIVITY (1/11)

Interested in startups.Has had negotiations on collaboration.

However, has not found suitable partner startups.

2. OPPORTUNISTS (2/11)

Making first trials.

Finding out how to exploit the advantages of startup activity.

3. SPECIAL KNOW-HOW EXPLOITERS (5/11)

Exploiting special knowledge which is not found in other organizations.

Experienced in startup activities.Management group responsibilities for startup activities.

4. STRATEGIC EXPLOITERS (3/11)

Startup activity is on a strategic level.An important source of strategic resources.

Most extensive and most varied activities.Recognize most benefits.

Management group responsibilities for startup activities.

Startup activities of established Finnish companies

• The impact on the business is currently very small in terms of revenue.

• In some companies it is considered very important in terms of growth initiatives and renewal.

• The engagement seems to be increasing in volume and becoming more versatile.

• Companies have begun to consider startup activity as an entirety. Earlier it has been about occasional, single activities.

• Finnish companies are taking their first steps in systemizing and making their startup activity continuous.

• Extending startup activity demands examples on success of current activities.

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 10

PRACTICAL MANAGERIAL IMPLICATIONS

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 11

1. EXPRESS WHAT YOU ARE LOOKING FOR

• Established companies should express how they engage in startup activities, e.g. on their websites.

• This would help the most suitable startups approach the established companies with most suitable propositions.

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 12

2. ARE YOU SYSTEMATIC?

•What are your purposes in the startup activities?

•What are your long-term plans?

• Follow-up? How do you measure it?

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 13

3. LEARN FROM INTERNATIONAL EXAMPLES

• BBVA, Cisco, GE, Siemens, Telefonica, Unilever…

•Management group visits to Silicon Valley

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 14

4. HOW TO ENCOUNTER STARTUPS?

• Events, hackathons, competitions

• Screening (yourself or with a third party)

•Accelerator programs

•Good availability and channels in your own organizationo e.g. a contact person and a website contact form for startups

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 15

20.12.2016 STARTUP ACTIVITIES OF ESTABLISHED FINNISH COMPANIES - SINI SAALASTI 2016 16

THANK YOU!

Sini Saalasti

sini.saalasti@saalasti.fi / +358 40 503 2874